Valero to Buy LyondellBasell's Former Houston Refinery for $320.5 Million, Plans Restart
Valero Energy agreed to buy LyondellBasell's former Houston refinery for $320.5 million and plans to bring 165,000 barrels a day of processing capacity back online by the end of 2027, the companies disclosed Friday.
Valero Refining-Texas, a wholly owned Valero subsidiary, signed a definitive agreement on Oct. 29 to acquire all of the equity of LYB Houston Hub Holdings LLC from a LyondellBasell subsidiary, according to Valero's 8-K. The price is subject to closing adjustments. LYB Houston indirectly owns the refinery site, which sits next to Valero's own Houston refinery on the Houston Ship Channel.
Restart plan
Valero said it expects to initially restart 165,000 barrels a day of light sweet crude processing capacity by year-end 2027. The deal also gives Valero the option to later invest in high-complexity processing of heavy sour crude, which typically costs refiners less to buy than lighter grades.
"This acquisition is a unique opportunity to strategically expand Valero's U.S. Gulf Coast footprint at a fraction of replacement value and enhance the long-term strength of our refining system," Chairman, CEO and President Lane Riggs said in the release. He said the deal is expected to provide a compelling financial return and attractive commercial optimization opportunities.
Closing conditions
The transaction requires customary conditions, including the expiration or termination of the federal antitrust waiting period under the Hart-Scott-Rodino Act. The companies expect it to close by the end of 2026.
What it means for LyondellBasell
LyondellBasell stopped running the Houston refinery in February 2025 and now reports its former refining business as a discontinued operation, according to its third-quarter earnings release, also issued Friday. The sale turns an idled asset into cash as the chemicals maker works through its Cash Improvement Plan.
Why it matters
Building a new U.S. refinery is rare and costly. Buying an idled plant next door lets Valero add Gulf Coast capacity without starting from scratch, at a time when refining margins have been strong.
By the numbers
- $320.5 million: purchase price, before closing adjustments
- 165,000: barrels a day of capacity Valero plans to restart
- Year-end 2027: target for the restart
- End of 2026: expected closing
Sources
- Valero Energy Form 8-K announcing agreement to acquire LYB Houston Hub Holdings (Exhibit 99.01), filed Oct. 30, 2026 (accession 0001628280-26-068387)
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